Wednesday, September 24, 2008

Chronicles Of Depression 2.0: #234: Milken

The poster boy for the excesses of the first Wall Street orgy, Michael Milken, convicted, fined, and imprisoned Junk Bond King is astonished by today's Wall Street crack whoredom.

Junk bond king Milken astounded by Wall Street crisis
"Thirty-to-one leverage is not a business, it has never been a business and it will never be a business," said Mr. Milken in a clear reference to the now infamous debt to asset ratio at defunct Wall Street giant Lehman Brothers. His own businesses have never been leveraged by a ratio of more than four to one, Mr. Milken said.

Emphasis added by me.

Mr. Milken also drew a distinction between U.S. banks which are not currently in a position to finance more consumer spending, and well-capitalized Chinese banks that have more funds available.

Emphasis added by me.

You will welcome your new Chinese Overlords.

All Chronicles of Depression 2.0 posts. The trail of FAIL.

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